Agro Based (Central) Public Sector Enterprises: Performance Indicators, Capital and Labour Productivity
Following India’s independence, it was widely recognized and accepted that agriculture remains the backbone of the economy. Mainly two types of innovations came into prominence to develop agriculture sector- one, institutional changes and at the second place technological innovations. Among the institutional changes “land to the tiller” was the avowed objective and this led to abolition of Zamindari system in various states, launching of Bhoodan Movement and promoting cooperative farming. This was also supplemented with technological innovations- starting of multipurpose hydropower projects and later on ‘Green Revolution’ with four major components. The present paper has attempted to estimate marginal productivity of labour and capital for agro based central public sector enterprises in Indian industry for the period 2002-2007, and the results are quite mixed. The empirical evidence of the present paper has established the fact that elasticity as well as marginal productivity of labour was highly insignificant in case of public sector agro enterprises.
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